Selecting a Property Manager or Management Company

I am often asked by clients what is the most important attribute they should look for when hiring a property manager or property management company?

Often, I ask them to give me a series of short responses as to what their perfect property manager would be like. It usually goes something like smart, educated, financial understanding, professional, poised, etc. Rarely, if ever, do they mention the single most important word, and that word is integrity.

My response is usually met with a surprised look followed by an "Ah-ha" moment. I tell my clients that integrity is the most important attribute of a property manager. Without it, their investment (whether the property or the investment in the manager or company itself) is doomed to failure.

The rules are simple. If the manager or company does not operate at a high level of service then how can your investment property?

As a property manager with nearly 20 years of experience, the one thing that people can count on is my integrity and reputation. When a property manager tells you something will be done his words must always be backed by his deeds. There is nothing more frustrating to a tenant or property owner than a manager who does not react swiftly and decisively to resolve an issue.
Continued repetition of a slow to react manager or one who does not follow through, rapidly erodes one's reputation.

Integrity is not only about monetary matters, but matters of personal principle. I've learned through the years that it's about always "doing the right thing". Even at times when budget constraints may summarily prevent the correct decision.

Property owners and managers sometimes forget that budgets are nothing more than outlines and that there are times that extenuating circumstances prevent you from meeting your targets. I'd much rather go over budget on a line item than to have a valued tenant question why I cannot meet his request. It's not just about monetary repercussions, it's about good will and establishing solid relationships. The tenant and owner need to feel that I have both of their best interests in mind. Further, going above and beyond expectations is always good business and when you have integrity these situations only enhance your reputation.

One of the best ways to know whether your new hire has integrity is by choosing one with the Institute of Real Estate Management's (IREM) elite designations of CPM or ARM. IREM designees are held to a Code of Professional Ethics. For a CPM or ARM, failure to act in an ethical manner as well as a fiduciary capacity to their clients is grounds for possible revocation of their designation.

Unlike other sanctioning bodies in real estate such as NARPM, NAR and others, the IREM Code of Professional Ethics extends to the tenants and business relationships not just the employer or owner. More importantly, IREM is one of the oldest and most respected professional organizations and puts teeth behind the execution of the Code of Ethics, they do not just pay lip service like others. Further, the monetary and work history investment in the acquisition of the designation's far exceed other organizations standards. IREM designee's must have a minimum of 3 years experience before they are even qualified to earn their certifications and must pass the most comprehensive test in the industry. This ensures your property manager is one of the best at his craft. Hiring an IREM Certified Property Manager insures that the overall best interest of the subject property is always followed and that the manager has the skills, experience, integrity and reputation to represent you.

Further, did you know that when using an IREM CPM you are less likely to be a party to a lawsuit? This is due to the level of professional expertise and checks and balances put in place by your manager.

So, if you are looking to hire a property manager or company for your investment property type, look for the IREM Certified Property Manager designation and be sure that the individual you hire is among the most highly skilled in the business and that his ethics, integrity and reputation are irrefutable.